Blog Profile / Dr Housing Bubble
| URL : | http://www.doctorhousingbubble.com/ | |
|---|---|---|
| Filed Under: | Real Estate / Real Estate Industry News | |
| Posts on Regator: | 745 | |
| Posts / Week: | 2.8 | |
| Archived Since: | March 20, 2008 | |
Blog Post Archive
California government benefitting from rising property values: Low rates and higher home values increase property tax collections. Who pays tax bill on foreclosed properties?
Home owners have a vested interest in seeing their home value increase. This is probably no shocking revelation. But local governments may have an even bigger interest in rising values. Property taxes are on the uptrend with higher home values. Property taxes are a major source of revenue for local governments and go to various [...]
Is the new kind of real estate investor to blame for the falling home ownership rate? The current data on investor purchases, home ownership, and all cash purchases.
One piece of housing information that warrants a deeper analysis is the continually falling home ownership rate. Since the recession hit over 5,000,000 Americans have gone through the process of foreclosure. Yet for over a year now, the housing market has been recovering with lower interest rates, higher home prices, and a record low amount [...]
Jumbo loans, all cash investors, and slow population growth: The gentrification of Southern California.
Only in Southern California will you have someone moan about making six-figures while driving their European financed car and not being able to “live well” while the weather is near perfect all year round. There is one thing you can’t complain about and that is the weather. Ironically though, some of the cheaper SoCal counties [...]
The renting generation – homeownership rate for those 35 and younger continues to decline. Overall homeownership falls in spite of rising affordability.
Going to any open house in Southern California during a sunny weekend will make you think that the entire housing market is on fire and that the homeownership rate must be going up. Obviously with all these buyers, the rate must be going up. Right? Well it isn’t because a large number of these buyers [...]
The last to the party: Investors and flippers competing for small amount of inventory. Home prices increasing at fastest rate since 2006. A case analysis of a Burbank investment property.
The data coming out on home prices is rather clear. Home prices are moving up steadily in the last year now increasing at a rate last seen in 2006. Of course, little of this is coming from wage growth but more from easy access to debt, investor demand, and historically low supply. One thing that [...]
The current status of foreclosure activity: Pre-foreclosures up 200,000+ from one year ago and examining inflation in regards to housing prices.
Foreclosures are still relatively high but what makes things appear to be better comes from a couple of fronts. First, foreclosures are being purchased at a faster rate by investors and some are doing this at the courthouse steps under a Nevada sun or rolling storms of Florida. So many do not make the MLS [...]
The inventory is coming back just not in manic areas – at least not today: Some markets reaching new peak prices but competition is fierce because of lack of inventory.
The good news for our inventory starved nation is that supply is indeed increasing. The trend is positive this year and it is starting to look like we reached a bottom when it comes to the lack of inventory. The only caveat in this is that it is unlikely to be in an area where [...]
The drawn out impact of quantitative easing on real estate: Japanese real estate continues to struggle while Bank of Japan expands monetary base. Federal Reserve and Americans style quantitative easing.
Quantitative easing is unlikely to get any airtime on the local press but this is the overarching policy that the Fed has enacted to pull us out of the recession. What many people do not know is that Japan is ahead of the curve when it comes to enacting quantitative easing to deal with a [...]
Subprime by any other name: FHA insured loans are least appealing financing option for home sellers. The psychology of rising home prices.
FHA insured loans filled a giant void from the private mortgage market exiting the game by brute force as the housing bubble burst. One thing is certain when it comes to consumer psychology especially with such an emotional decision like buying a home. People have wine expectations but come with beer budgets and this is [...]
The return of the prodigal interest only loan: The appearance of safety is bringing back our favorite mortgages.
What if I told you that you could have a $600,000 mortgage for a monthly payment of $1,700? Sounds like a great deal right? Of course the only way to get this kind of action is by going into the “exotic” mortgage options that everyone once thought were put to rest. I was going through [...]
Long live the rally in California home prices: How much momentum does the current real estate run have? A market where heartfelt letters are required begging sellers to offer you a Great Depression built home for an outrageous price.
However you want to slice it, median or repeat same home sale prices the price of a home in California went into the stratosphere over the last year. The psychology has now shifted to full fledge mania where people think they are going to be priced out but some are oblivious to the reality that [...]
The mix in California real estate – Did the median price go up by 28 percent in one year?
The median price for a home is a useful measure in more stable markets. However, this current market is anything but stable especially for California. That is why according to the California Association of Realtors, the median price for a home in California went up 28.2 percent in one year. Even DataQuick has the year [...]
The Good, the Bad, and the Ugly aspects of the American housing market: Key indicators of the 2013 real estate market.
The US housing market is massive. You would expect this from a nation of 315,000,000+ people spanning over 50 states. So it is important to understand the various dynamics occurring over many states. In regards to single family home buyers, in most of the United States home prices are very reasonable. This is hard for [...]
The euphoria in housing: 82 percent of agents now believe is a good time to sell. The continuing lack of inventory in the real estate market: Is record low inventory simply a part of the new housing market?
The spring season is now in full bloom and the real estate market continues to have a wickedly low amount of inventory for sale. According to the California Association of Realtors, annual home sales are now down about 6 percent while the median home price is up 24 percent. Inventory is still at or near [...]
A glimpse at the Irvine housing market and global gentrification: Investor demand, foreign purchases, and financial characteristics of Irvine homeowners.
One of the more challenging pieces of data to come by is financial characteristics of those who own their home. Most data aggregates renters and homeowners together and in California, where nearly half of families rent, this data does not give a good perspective as to what financial characteristics drive homeownership. The homeownership rate in [...]
The affair of all cash buyers and real estate: What are normal historical rates for all cash buyers when it comes to the housing market? Has big money peaked when it comes to the housing market?
It is astounding how people brush off an overall weak economy and suddenly justify all cash investors as somehow a normal part of the real estate market. Once again, we are in uncharted territory. The amount of all cash buyers is off the charts. Not only are these Wall Street investors but also foreign money [...]
California and the middle class illusion: California and a state of two extremes.
Middle class families in California have faced many challenges over the last few decades. One of those challenges has been the rollercoaster movement of the housing market. What is clear from many readers of this blog is that many are seeking to buy or rent in mid-tier to upper-tier markets. Yet in these markets, even [...]
FHA loan guarantees now amount to $1.1 trillion: Upcoming changes to FHA mortgage insurance premiums and the cost of low down payment loans.
FHA insured loans stepped in to take up a lot of the slack when other low down payment loans exited the market in 2007. FHA insured loans are still a low down payment option requiring only 3.5 percent down but at least with these loans, some level of due diligence is done when looking at [...]
Does shadow inventory even matter in Los Angeles County? Non-distressed inventory at 17,000 and distressed inventory at 17,000.
The housing market continues to face a few trends in 2013. Low inventory, higher leverage because of low interest rates, and high demand from investors. Take for example the share of foreclosure re-sale properties that are being sold. In Southern California, the peak was reached in 2009 at 58.3 percent of all sales. Today foreclosure [...]
The insatiable demand for rentals: How being a landlord is all the housing rage. If housing is booming, why are mortgage originations so low?
Most people have a hard time with regular math problems, let alone complicated financial instruments like derivatives. So to think that most people are following the movements of the Fed and basing buying decision on this is somewhat unrealistic. The rush to buy homes today is driven by a different set of factors from the [...]